Strong franchise and extensive branch network in Hong Kong Strong capitalization. Above-average funding and strong liquidity. High systemic importance in Hong Kong. Exposure to rising economic risk in Hong Kong and China. The stable outlook reflects our expectation that Bank of China (Hong Kong) Ltd. (BOCHK) will maintain its strong business position, capital and earnings, liquidity, and above-average funding profile over the next 24 months. We view the likelihood of an upgrade as low. We believe a downgrade of BOCHK is also unlikely over the next two years. We could lower the ratings on BOCHK if the capacity of government support reduces and BOCHK's stand-alone credit profile (SACP) weakens by at least one notch. We could lower BOCHK's SACP if